Moody's: Supply strains will worsen for APAC companies amid energy and raw material cost pressures

In its latest report published on Wednesday, Moody’s Investors Service warned that supply strains will worsen for APAC companies amid the energy and raw material cost pressures.

Additional takeaways

Russia-Ukraine crisis and ongoing pandemic will delay supply-side recovery, with all APAC corporate sectors exposed to related cost risks.

All corporate sectors in the region will be exposed to cost risks from supply-side pressures to varying degrees through at least the end of this year.

In addition, pandemic-related mobility restrictions remain strict in parts of the region and are creating new uncertainties.

Market reaction

The worsening Russia-Ukraine crisis is weighing heavily on the market sentiment, with the Asian equities incurring moderate losses while the S&P 500 futures drop 0.09% on the day.